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"We will work first to work out detailed action plans in areas where we can start right away and prepare a blueprint for other mid- and long-term projects."

This is what the prime ministers of South and North Korea had in mind prior to the talks which kicked off yesterday in Seoul. The two Koreas made preparations for the meeting earlier this month and exchanged opinions on five major agenda items. They include: creation of a peace zone in the West Sea, construction of a shipyard, maintenance of roads and railways in the North, and expansion of an industrial complex in the North's border town of Gaesong.

Sources say that both sides have greatly narrowed their differences in those areas during the preparatory talks held three times over the past three weeks. They say that projects that can be put into action immediately include: expansion of the Gaesong complex, launch of railway operations between Munsan and Bondong and reunification of separated families.

In particular, it is highly likely that the two Koreas will agree to ease restrictions on the passage of civilians in and out of the Gaesong Industrial Complex, where South Korean companies are operating factories, following an agreement reached by North and South Korea at the first inter-Korean summit in 2000. Construction on the facility was slow to start, however, due to a number of logistical problems with transport, infrastructure and access to materials. Though these problems are still being resolved, the complex represents the first inter-Korean economic project linking South Korean technologies and knowledge to inexpensive land and labor in North Korea. Passage in and out of the complex has been a major obstacle to business operations, as South Korean citizens entering the complex must notify North Korea three days in advance of their visit.

The Munsan-Bongdong railway is also expected to boost the operation of the complex by helping to reduce logistical expenses overall. It takes around 800,000 won for a 25-ton truck to travel between Daejeon and Gaesong, but with the addition of the new railway, logistical costs will be cut by half. In addition, a freight train can transport over 100 times as much as a 4.5-ton truck can carry. North and South Korea launched a test railway operation in May, so trains will officially run on the line within the year if the prime ministers of the two Koreas can strike a deal this time.

North and South will also discuss the possibility of holding regular meetings between separated families of the two Koreas. Seoul will propose a plan to have these encounters every month, with smaller meetings held every week.

As for the proposed deal to create a peace zone in the West Sea, both sides are expected to create a consultative body through which they produce a detailed plan of action. One part of the plan includes a joint fishing zone and a port in the North Korean city of Haeju, which experts say is strategically and symbolically important for the facilitation of cross-border economic exchange and movement of goods in and out of Gaesong.

Among other things, the construction of a shipyard in the North will be a major inter-Korean economic cooperation project. For South Korean shipyards, which have struggled to find places to build new facilities, the project will come as a boon; the North has also shown keen interest in the project. A delegation of government officials and businessmen recently visited candidate sites for the shipyard and experts say that construction of the shipyard will largely be carried out by the private sector while governments will help to build the related infrastructure.

Please direct questions or comments to [englishhani@hani.co.kr]